Bachus says Volcker Rule detrimental to Main Street banks

House Financial Services Committee Chairman Spencer Bachus said during a hearing in front of the House Subcommittee on Capital Markets and Government Sponsored Enterprises this week that the controversial Volcker Rule will negatively impact community banks.

“[A]n overly restrictive Volcker Rule will…have a negative impact on Main Street by increasing borrowing costs for consumers and companies both large and small,” Bachus said. “If businesses find it harder to borrow, it will be harder for them to make capital investments and create jobs; if consumers have less access to credit, it will be harder for them to care for their families; and if the value of the assets held by savers and investors declines, people will find it harder to save for a new home, for college or retirement.”

Bachus also said that American businesses have come under increased pressure as a result of the 2010 Dodd-Frank Act.

“Main Street businesses are now facing a constriction of both capital and credit,” Bachus said. “The derivatives rules, the Volcker Rule and a host of other Dodd-Frank rules are putting enormous pressure on corporate balance sheets at a time when economic conditions are already putting increased demands on the time and resources of job creators.”